A Note on Tax Exemptions for Churches

[marylandblue]

74. My point is that "control" is not the issue

I am having a hard time figuring out where that even come from. I don't think taxes are "control." Reading back through this thread, it looks like you are the first to bring it up, but maybe I missed something.

Taxes are what we use to pay for government services. Everybody pays unless you get either an exemption or you are destitute. The government gives exemptions to certain people or entities. Tax exemptions serve some social purpose. They don't charge non-profits tax because it's assumed the social benefit of the non-profit activity is worth the subsidy. And yes, it is a subsidy. Google "Tax subsidy" and read the first definition, from Investopedia. It's a subsidy because, if we did tax non-profits, either the government would collect more taxes to provide more services, or everyone else would pay lower taxes to provide the same services. Meanwhile the subsidized entity gets to keep more money that hopefully provides some social good.

The government doesn't tax houses of worship because it has decided that worship itself is a social good. They get the break whether they do anything for the wider community or not. It's not really about the 1st Amendment. The tradition goes back to the Emperor Constantine who gave the Church a tax break in exchange for their support and helping to run the Empire.

I am not against providing a tax break to religious organizations. I am just not under the illusion that it isn't, in fact, a subsidy.